Lee Development Co. v. Papp

803 P.2d 464, 166 Ariz. 471, 75 Ariz. Adv. Rep. 85, 1990 Ariz. App. LEXIS 386
CourtCourt of Appeals of Arizona
DecidedNovember 29, 1990
Docket2 CA-CV 90-0121
StatusPublished
Cited by22 cases

This text of 803 P.2d 464 (Lee Development Co. v. Papp) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lee Development Co. v. Papp, 803 P.2d 464, 166 Ariz. 471, 75 Ariz. Adv. Rep. 85, 1990 Ariz. App. LEXIS 386 (Ark. Ct. App. 1990).

Opinion

OPINION

HOWARD, Judge.

This action arose out of a commercial lease for premises in a development in Phoenix known as Park Place. Appellees (Lee Development) filed a complaint for breach of lease. Appellants (Papp) answered and counterclaimed alleging the breach of a superceding written agreement and sought declaratory relief. The case was tried to the court, sitting without a jury, which, after making findings of fact and conclusions of law, entered judgment in favor of Lee Development on its complaint in the sum of $51,904.21 and in favor of Lee Development on Papp’s counterclaim.

The trial court made the following findings of fact and conclusions of law:

1. That on or about February 5, 1985, Defendants entered into a lease agreement with Plaintiffs for office space located at 4647 North 32nd Street, Suite 115, Phoenix, Arizona.

2. That the commencement date of the lease was April 1, 1985, and the base rent was Three Thousand One Hundred Seventy-Seven and 76/ioo Dollars ($3,177.75) per month, pursuant to Section 6 of the lease. Rent tax at the commencement of the lease was four percent (4%).

3. That Defendants’ rent under the Suite 115 lease was to commence December 1, 1985, and be paid monthly through November 30, 1988. The term of the Suite 115 lease was forty-four (44) months, including eight (8) months of free rent.

4. That by the time that Defendants took possession of Suite 115, the space referred to in Defendants’ Right of First Refusal had been leased to other tenants.

5. That the Suite 115 lease did not obligate Plaintiffs to release Defendants from their obligations thereunder if additional space could not be provided.

6. That Plaintiffs and Defendants had several discussions regarding Defendants’ need for additional space. Throughout these discussions, Defendants did not indicate a need for urgency.

7. That Defendants were never released from their obligations under the Suite 115 lease.

8. That Defendants were looking for office space other than Suite 200 between January 23,1986 and February 20, 1986.

9. That on February 20, 1986, Plaintiffs advised Defendants that possession of Suite 200 could not be delivered then.

10. That Roy Papp told George Lee during the week of February 24, 1986 that it was a “blessing” that Defendants had not taken Suite 200 because Defendants needed even more space than was available there, and that Defendants would not be taking possession of Suite 200.

11. That by March 4, 1986, Defendants had no intention of taking possession of Suite 200.

12. That Defendants sought and obtained a lease for premises in a building other than that owned by Plaintiffs be *474 cause Defendants wanted and needed more space than was available in Suite 200, and not because possession of Suite 200 was not tendered to Defendants on February 20, 1986.

13. That Plaintiffs sold the building known as Park Place, which included Suite 115, in May 1986, to OP & F Trust and Meyer Investments (“Meyer”). Meracor Development Corporation was involved as a participating lender.

14. That Plaintiffs sent Estoppel Certificates to all tenants, including Defendants. Defendants refused to sign any Estoppel Certificate.

15. That because of Defendants’ refusal to sign the Estoppel Certificate, the purchasers of the building required that Plaintiffs and Meracor execute an Indemnity Agreement as a condition of the sale. The Indemnity Agreement required Plaintiffs and Meracor to indemnify the purchasers for any losses sustained by a breach of the Suite 115 lease by Defendants.

16. That neither Ms. Jones nor Meyer, as property manager for OP & F Trusts, had initiated legal action against Papp based on a breach of Suite 115.

17. That Defendants vacated Suite 115 on or about June 27, 1986, having paid rent through June 30, 1986, and having refused to pay rent beginning July 1, 1986, despite demand.

******

19. That Defendants failed to prove damages arising from any breach by Plaintiffs of the agreement of January 23, 1986.

20. The Lee Company was not an Arizona corporation, but was a fictitious name used by George Lee. The Lee Development Company was an Arizona corporation owned and controlled by George Lee. Lee/OGA was an Arizona limited partnership in which the Lee Development Company was a general partner. That The Lee Development Company, the Lee Company, and Lee/OGA partnership are all entities by which George Lee did business and may be considered as the same entity for purposes of this Judgment.

THE COURT FINDS AS A MATTER OF LAW:

A. Defendants breached the Suite 115 lease by vacating and abandoning the premises in violation of Section 15 of the Suite 115 lease and refusing to pay rent and their other obligations thereon since July 1, 1986.

B. Plaintiffs are the proper party to prosecute Defendants in an action for damages caused by Defendants’ breach of the lease contract for Suite 115.

C. The letter of intent of January 23, 1986, which formed the basis of the First Claim for Relief of Defendants’ Counterclaim, in which the Suite 115 Lease was to be amended to cover Suite 200, was a contract separate from the Suite 115 Lease, and did not indicate a starting date. The January 23 letter was an agreement to amend the Suite 115 Lease in the future. Said agreement was not performed by Plaintiffs and was made moot by the action of Defendants.

D. Both parties are eligible to recover their attorneys’ fees incurred herein pursuant to A.R.S. § 12-341.01. Plaintiffs are entitled to an award of their reasonable attorneys’ fees.

E. Defendants are not entitled to a Declaratory Judgment that the Suite 115 lease has not terminated.

F. The termination of Defendants’ lease obligations for Suite 115 was contingent upon Defendants assuming lease obligations for Suite 200. Because Defendants never assumed the lease obligations for Suite 200, Defendants’ obligations for Suite 115 never terminated.

G. Plaintiffs reasonably mitigated their damages.

H. There has been no acceptance of surrender of Suite 115.

I. Plaintiffs are entitled to Judgment in their favor and against Defendants, as of July 1, 1988, in the sum of $55,984.10.

J. That Defendants would have been entitled to Judgment in their favor and against Plaintiffs on the counterclaim, as *475 a result of Plaintiffs’ failure to perform on the agreement to amend the Lease but for the action of Defendants in rendering the issue moot by negotiating for larger space in another facility prior to making demand on Plaintiffs for performance of the amendment and tender of Suite 200.

K. Defendants are entitled to a declaratory Judgment that any and all claims against Defendants arising out of the Lease Agreement dated February 5, 1985, including claims by Meyer Investment Properties, Inc.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Sammons v. Keaggy
Court of Appeals of Arizona, 2015
Pipher v. Loo
212 P.3d 91 (Court of Appeals of Arizona, 2009)
Riepe v. Riepe
91 P.3d 312 (Court of Appeals of Arizona, 2004)
Ahwatukee Custom Estates Management Ass'n v. Turner
2 P.3d 1276 (Court of Appeals of Arizona, 2000)
Enterprise Leasing Co. of Phoenix v. Ehmke
3 P.3d 1064 (Court of Appeals of Arizona, 1999)
MacK v. Cruikshank
2 P.3d 100 (Court of Appeals of Arizona, 1999)
Beijer v. ADAMS EX REL. COUNTY OF COCONINO
993 P.2d 1043 (Court of Appeals of Arizona, 1999)
Johnson v. Elson
967 P.2d 1022 (Court of Appeals of Arizona, 1998)
Farmers Ins. Co. of Arizona v. Young
985 P.2d 507 (Court of Appeals of Arizona, 1998)
In Re Bryant Universal Roofing, Inc.
218 B.R. 948 (D. Arizona, 1998)
Marriage of Muchesko v. Muchesko
955 P.2d 21 (Court of Appeals of Arizona, 1997)
Mohave Electric Cooperative, Inc. v. Byers
942 P.2d 451 (Court of Appeals of Arizona, 1997)
Scottsdale Princess Partnership v. Maricopa County
916 P.2d 1084 (Court of Appeals of Arizona, 1995)
Baker v. Baker
900 P.2d 764 (Court of Appeals of Arizona, 1995)
Brink Electric Construction Co. v. Arizona Department of Revenue
909 P.2d 421 (Court of Appeals of Arizona, 1995)
Capitano v. State
875 P.2d 832 (Court of Appeals of Arizona, 1993)
Tucson Mechanical Contracting, Inc. v. Arizona Department of Revenue
854 P.2d 1162 (Court of Appeals of Arizona, 1992)
Great Lakes Aircraft Co. v. City of Claremont
608 A.2d 840 (Supreme Court of New Hampshire, 1992)
McNeel v. McNeel
818 P.2d 198 (Court of Appeals of Arizona, 1991)
Gila County Juvenile Action No. DEL-6325 v. Duber
816 P.2d 944 (Court of Appeals of Arizona, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
803 P.2d 464, 166 Ariz. 471, 75 Ariz. Adv. Rep. 85, 1990 Ariz. App. LEXIS 386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lee-development-co-v-papp-arizctapp-1990.